Composed of the main islands of São Tomé and Príncipe and surrounding islets, the republic is situated off the western coast of Africa. In 1975, a classic Marxist single-party regime was established following independence from Portugal, but a referendum in 1990 resulted in a 72% vote in favor of democracy. São Tomé's main concerns are to rebuild relations with Portugal and to seek closer ties with the EU and the USA.

The population is entirely descended from immigrants, since the islands were uninhabited when the Portuguese arrived in 1470. As the Portuguese settled, they imported Africans as slaves to work the sugar and cocoa plantations. The abolition of slavery in the 19th century, and the departure of 4000 Portuguese at independence, has resulted in a population which is 10% Portuguese and Creole and 90% black African, although Portuguese culture predominates. Blacks run the political parties. Society is well integrated and free of racial tensions. The main conflicts relate to class or differing ideologies. The extended family still offers the best, if not the only, form of social security. Women have a higher status than in most other African states; many have succeeded in attaining prominent positions in the professions.

Strengths

Legacy of Portuguese-built infrastructure. Potential for fisheries, agriculture, tourism, and oil development. Ability to attract substantial aid.

Weaknesses

Cocoa accounts for 90% of export earnings. Skillful diplomacy has attracted high levels of aid, but mismanagement of these funds has resulted in severe debt. Weak currency.

In 1990, a new multiparty constitution swept away the Marxist single-party state that had existed since independence in 1975. The opposition PCD was swept to victory in 1991, and later that year Miguel Trovoada returned from 11 years' exile to be elected as an independent to the presidency. Early elections in 1994 saw the return to power of the MLSTP as the renamed MLSTP–PSD. The main political concerns are upholding the multiparty system and the development of the economy in the light of undersea oil reserves, ownership of which was guaranteed when São Tomé and Nigeria reached agreement in 2000 over their common maritime border. In the 2001 presidential elections, businessman Fradique de Menezes defeated former Marxist Pinto da Costa. He was forced to negotiate the formation of a coalition government with the MLSTP–PSD after the party won elections in 2002.

São Tomé has achieved rapprochement with Portugal and seeks to maintain links with other former Portuguese colonies, notably Angola. It has always had close ties with Gabon and, while not dropping its ex-communist links, seeks closer relations with other central African states, France, and the USA.

Since independence, the armed forces have figured prominently in national life. They have put down several attempted coups, notably in 1978, after which 2000 Angolan troops plus Soviet and Cuban advisers were invited in, and in 1988. In 1995, a group of army officers seized temporary control of the country. The national armed forces are believed to number 2000. With the collapse of the Eastern bloc, São Tomé now receives military assistance from the West.

An offshore oil exploration agreement with Nigeria was signed in 2001. There are no mineral resources on the islands. São Tomé is very fertile; cocoa estates are finally back to pre-1975 productivity, and diversification of crops is now a priority. Príncipe has better ports, but its wild scenery makes it more suitable for tourism than farming.

Fish conservation, deforestation for fuelwood, and potential tourism expansion are the major issues.

In 2000, plans were proceeding to construct a deepwater port at Agulhas Bay on Príncipe.

Although health care is not free, São Tomé has a better system of basic care than other African countries.

Education is compulsory for 7–14-year-olds. All staff at the one technical and three secondary schools are foreigners.

Crime levels are fairly low owing to the tightly knit nature of the community. Urban robberies are a problem.

Wealth disparities are not conspicuous. There is a growing business class. Cocoa workers form the country's poorest group.

Tourism is still small-scale, attracting wealthy Africans and Europeans. Despite recent foreign investment, the islands attract relatively few tourists annually. The first modern hotel opened in 1986.

The entire pre-independence history of the islands was as a Portuguese colony exploited by plantation owners.

• 1972–1973 Strikes by plantation workers.
• 1975 Independence as Marxist state. Plantations nationalized.
• 1978 Abortive coup.
• 1990 New democratic constitution.
• 1991–2000 Miguel Trovoada president for two terms.
• 1995 Príncipe granted autonomy.
• 2001 De Menezes wins presidency.